Common use of Penalty for Delay in Commissioning Clause in Contracts

Penalty for Delay in Commissioning. The Project shall be commissioned by the Scheduled Commencement of Supply Date (SCSD). Delay in commencement of supply of power, beyond the SCSD shall involve penalties on the Power Producer, as detailed below: a) For delay in commencement of supply of power up to 6 (six) months from SCSD, encashment of Performance Bank Guarantee (PBG) on per-day basis and proportionate to the contracted capacity that has not commenced supply of power. b) For delay in commencement of supply of power beyond 6 (six) months from SCSD, the following shall be applicable:-. (i) The contracted capacity shall stand reduced to the project capacity that has commenced supply of power within the period of SCSD plus 6 (six) months. The PPA for the balance contracted capacity that has not commenced supply of power shall stand terminated. (ii) The Power Producer shall be debarred from participating in bids issued by GUVNL for the following period: a. For one year in case of first default. b. For not less than 2 years and not more than 3 years for second and any subsequent defaults.